Editing Nuance Communications, Inc.
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We will use TEV/Revenue, EV/EBITDA & EV/EBIT multiples to calculate the mean value of the comp set. The implied valuation of Nuance Communications can then be determined by multiplying the mean value of each multiple vs its corresponding statistics. | |||
The TEV/Total Revenues multiple reflects whether a company overvalues or undervalues or its stocks or whether its valuation is fair. If a company's theoretical enterprise value is high in proportion to its actual revenue, its ratio is large, meaning it's overvalued. The lower the better, in that, a lower EV/R multiple signals a company is undervalued. From the above data we can come to the conclusion that Nuance is overvalued relative to its competitors. | The TEV/Total Revenues multiple reflects whether a company overvalues or undervalues or its stocks or whether its valuation is fair. If a company's theoretical enterprise value is high in proportion to its actual revenue, its ratio is large, meaning it's overvalued. The lower the better, in that, a lower EV/R multiple signals a company is undervalued. From the above data we can come to the conclusion that Nuance is overvalued relative to its competitors. |